Ardent Health Reports Third Quarter 2025 Results

BRENTWOOD, Tenn.--( BUSINESS WIRE)--Ardent Health, Inc. (NYSE: ARDT) ("Ardent Health" or the "Company"), a leading provider of healthcare in growing mid-sized urban communities across the U.S., today announced results for the quarter ended September 30, 2025.

Third Quarter 2025 Operating and Financial Summary

All comparisons are versus the same prior year period. See the footnotes to the Operating Statistics table of this press release for definitions of the metrics below and a full list of key operating metrics.

Total Revenue

$1.58 billion

8.8% growth Y/Y

Net Loss Attributable

to Ardent Health

$23 million

Adjusted EBITDA (1)

$143 million

46.3% growth Y/Y

Adjusted EBITDAR (1)

$184 million

Admissions

5.8% growth Y/Y

Adjusted Admissions

2.9% growth Y/Y

Net Patient Service Revenue

per Adjusted Admission

5.8% growth Y/Y

Revising 2025 Adjusted EBITDA (1) Guidance

Reaffirming Total Revenue: $6,200 - $6,450 million

Revising Adjusted EBITDA (1): $530 - $555 million

(1)

Adjusted EBITDA and Adjusted EBITDAR are financial measures that have not been prepared in a manner that complies with U.S. generally accepted accounting principles ("GAAP"). See "Supplemental Non-GAAP Financial Information" and reconciliations of non-GAAP measures to their most comparable GAAP financial measures contained later in this press release.

Third Quarter 2025 Results Commentary

Financial Performance Summary

For the third quarter of 2025:

Two non-recurring items impacted reported third quarter 2025 financial results:

Operating Performance Summary

The following table provides a summary of certain key operating metrics for the third quarter of 2025 compared to the same prior year period. See the footnotes to the Operating Statistics table of this press release for definitions of the metrics below and a full list of key operating metrics.

Three Months Ended September 30,

(Unaudited)

2025

2024

% Change

Adjusted admissions

89,328

86,833

2.9

Admissions

41,862

39,568

5.8

Inpatient surgeries

9,732

8,871

9.7

Outpatient surgeries

22,813

23,220

(1.8

Total surgeries

32,545

32,091

1.4

Emergency room visits

161,198

161,343

(0.1

Net patient service revenue per adjusted admission

17,252

16,312

5.8

Balance Sheet, Cash Flow & Liquidity Update

As of September 30, 2025, the Company had total cash and cash equivalents of $609 million and total debt of $1.1 billion. The Company’s net leverage ratio as of September 30, 2025 was 1.0x, as calculated under the Company's credit agreements, and its lease-adjusted net leverage ratio 1 was 2.5x, an improvement from 2.7x as of June 30, 2025. At the end of the third quarter, the Company’s available liquidity was $904 million.

During the third quarter of 2025, net cash provided by operating activities was $154 million, compared to $90 million in the same prior year period.

Lease-adjusted net leverage ratio is defined as the Company's net debt as of September 30, 2025, plus 8x trailing twelve-month real estate investment trust ("REIT") rent expense as of the end of the third quarter of 2025, divided by trailing twelve-month Adjusted EBITDAR as of September 30, 2025.

2025 Financial Guidance

The Company is reaffirming its full-year 2025 revenue guidance, which at the midpoint is an increase of 6% from 2024.

The Company now expects full-year 2025 adjusted EBITDA of $530 - $555 million, which at the midpoint is an increase of 9% from 2024. The updated guidance primarily reflects higher Professional Fee expenses and a higher level of payor denials for the second half of 2025. The accounts receivable and professional liability reserve adjustments were not a factor in revising adjusted EBITDA guidance.

All guidance is current as of the time provided and is subject to change.

Full Year 2025 Guidance

(Dollars in millions, except per share amount)

Previous Guidance

New Guidance

Total revenue

$6,200

—

$6,450

$6,200

—

$6,450

Net income attributable to Ardent Health, Inc.

$245

—

$285

$121

—

$146

Adjusted EBITDA

$575

—

$615

$530

—

$555

Rent expense payable to REITs

$164

—

$164

—

$164

Diluted earnings per share

$1.73

—

$2.01

$0.85

—

$1.03

Adjusted admissions growth

2.0%

—

3.0%

2.0%

—

3.0%

Net patient service revenue per adjusted admission growth

2.1%

—

4.4%

2.1%

—

4.4%

Capital expenditures

$215

—

$235

$215

—

$235

The Company’s guidance is based on current plans and expectations and is subject to a number of known and unknown uncertainties and risks, including those set forth below under the heading "Forward-Looking Statements." The Company does not forecast the impact of items such as, but not limited to, losses (gains) on sales of facilities, losses on retirement of debt, legal claim costs (benefits) and impairments of long-lived assets. The Company does not believe that it can forecast these items with sufficient accuracy because of the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of the Company’s control or cannot be reasonably predicted.

Third Quarter 2025 Results Conference Call

The Company will host a conference call to discuss its third quarter financial results on November 13, 2025, at 9:00 a.m. Eastern Time. A webcast of the conference call will be available in the Investor Relations section of the Company’s corporate website at https://ir.ardenthealth.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download, and install any necessary audio software.

To participate in the live teleconference:

United States Live:

1-888-596-4144

International Live:

1-646-968-2525

Access Code:

4437657

To listen to a replay of the teleconference, which will be available through November 27, 2025:

United States Replay:

1-800-770-2030

International Replay:

1-609-800-9909

Access Code:

4437657

About Ardent Health

Ardent Health (NYSE: ARDT) is a leading provider of healthcare in growing mid-sized urban communities across the U.S. With a focus on people and investments in innovative services and technologies, Ardent is passionate about making healthcare better and easier to access. Through its subsidiaries, the Company delivers care through a system of 30 acute care hospitals and approximately 280 sites of care with over 1,900 employed and affiliated providers across six states. For more information, please visit ardenthealth.com.

Supplemental Non-GAAP Financial Information

We have included certain non-GAAP financial measures in this press release, including Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted EBITDAR. We define these terms as follows:

Forward-Looking Statements

This press release contains "forward-looking statements" as that term is defined in the U.S. federal securities laws. These forward-looking statements include, but are not limited to, statements other than statements of historical facts, including, among others, statements relating to our future financial performance, our business prospects and strategy, anticipated financial position, liquidity and capital needs, the industry in which we operate and other similar matters. Words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "could," "would," "will," "may," "can," "continue," "potential," "should" and the negative of these terms or other comparable terminology often identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements. Factors, risks, and uncertainties that could cause actual outcomes and results to be materially different from those contemplated include, among others: (1) general economic and business conditions, both nationally and in the regions in which we operate, including the impact of challenging macroeconomic conditions and inflationary pressures, current geopolitical instability, and impacts from the imposition of, or changes in, tariffs, as well as the potential impact on us of the federal government shutdown or other uncertain political, financial, credit and capital conditions; (2) possible reductions or other changes in Medicare, Medicaid and other state programs, including Medicaid supplemental payment programs, Medicaid waiver programs or state directed payments, that could have an adverse effect on our revenues and business; (3) reduction in the reimbursement rates paid by commercial payors, increased reimbursement denials or payment delays by commercial payors, our inability to retain and negotiate favorable contracts with private third party payors, or an increasing volume of uninsured or underinsured patients; (4) effects of changes in healthcare policy or legislation, including the One Big Beautiful Bill Act (the "OBBBA") and any other reforms that have or may be undertaken by the current presidential administration, and legal and regulatory restrictions on our hospitals that have physician owners; (5) the ability to achieve operating and financial targets, develop and execute mitigation plans to offset to the extent possible impacts from the OBBBA, the scheduled expiration of temporary enhanced subsidies for individuals eligible to purchase insurance coverage through health insurance marketplaces and imposition of tariffs, attain expected levels of patient volumes and revenues, and control the costs of providing services; (6) security threats, catastrophic events and other disruptions affecting our, our service providers’ or our joint venture ("JV") partners’ information technology and related systems, which have adversely affected, and could in the future adversely affect, our relationships with patients and business partners and subject us to legal claims and liabilities, reputational harm and business disruption and adversely affect our financial condition; (7) the highly competitive nature of the healthcare industry and continued industry trends towards clinical transparency and value-based purchasing may impact our competitive position; (8) inability to recruit and retain quality physicians, as well as increasing cost to contract with hospital-based physicians; (9) changes to physician utilization practices and treatment methodologies and other factors outside our control that impact demand for medical services and may reduce our revenues and ability to grow profitability; (10) the effects related to the sequestration spending reductions pursuant to both the Budget Control Act of 2011 and the Pay-As-You-Go Act of 2010 and the potential for future deficit reduction legislation; (11) continued industry trends toward value-based purchasing, third party payor consolidation and care coordination among healthcare providers; (12) inability to successfully complete acquisitions or strategic JVs or inability to realize all of the anticipated benefits; (13) liabilities because of professional liability and other claims brought against our hospitals, physician practices, outpatient facilities or other business operations; (14) exposure to certain risks and uncertainties by the JVs through which we conduct a significant portion of our operations, including anticipated synergies of past acquisitions and the risk that transactions may not receive necessary government clearances; (15) failure to obtain drugs and medical supplies at favorable prices or sufficient volumes; (16) operational, legal and financial risks associated with outsourcing functions to third parties; (17) our facilities are heavily concentrated in Texas and Oklahoma, which makes us sensitive to regulatory, economic and competitive conditions and changes in those states; (18) negative impact of severe weather, climate change, and other factors beyond our control, which could restrict patient access to care or cause one or more facilities to close temporarily or permanently; (19) risks related to the Master Lease with Ventas ("Ventas Master Lease") and its restrictions and limitations on our business; (20) the impact of our significant indebtedness and the ability to refinance such indebtedness on acceptable terms; (21) our failure to comply with complex laws and regulations applicable to the healthcare industry or to adjust our operations in response to changing laws and regulations; (22) the impact of governmental claims or governmental investigations, payor audits and litigation brought against our hospitals, physician practices, outpatient facilities or other business operations; (23) actual or perceived failures to comply with applicable data protection, privacy and security laws, regulations, standards and other requirements; (24) the impact of a deterioration of public health conditions associated with a future pandemic, epidemic or outbreak of infectious disease; (25) inability to or delay in building, acquiring, selling, renovating or expanding our healthcare facilities; (26) failure to comply with federal and state laws relating to Medicare and Medicaid enrollment, permit, licensing and accreditation requirements; (27) the results of our efforts to use technology, including artificial intelligence and machine learning, to drive efficiencies, better outcomes and an enhanced patient experience; (28) our status as a controlled company; (29) conflicts of interest between our controlling stockholder and other holders of our common stock; and (30) other risk factors described in our filings with the Securities and Exchange Commission.

Many of the important factors that will determine these results are beyond our ability to control or predict. You are cautioned not to put undue reliance on any forward-looking statements, which speak only as of the date of this press release. Except as otherwise required by law, we do not assume any obligation to publicly update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events. All references to "Company," "Ardent Health," "Ardent," "we," "our" and "us" as used throughout this release refer to Ardent Health, Inc. and its affiliates, unless stated otherwise or indicated by context.

Ardent Health, Inc.

Condensed Consolidated Income Statements

(Unaudited; dollars in thousands, except per share amounts)

Three Months Ended September 30,

2025

2024

Amount

Total revenue

1,576,746

100.0

1,449,817

100.0

Expenses:

Salaries and benefits

676,962

42.9

635,223

43.8

Professional fees

305,083

19.3

274,223

18.9

Supplies

275,881

17.5

251,862

17.4

Rents and leases

26,386

1.7

26,410

1.8

Rents and leases, related party

38,106

2.4

37,249

2.6

Other operating expenses

198,714

12.6

117,700

8.2

Interest expense

13,914

0.9

14,629

1.0

Depreciation and amortization

39,156

2.5

36,771

2.5

Loss on extinguishment and modification of debt

7,344

0.5

1,898

0.1

Other non-operating gains

(2,597

)

(0.2

(2,807

)

(0.2

Total operating expenses

1,578,949

100.1

1,392,750

96.1

(Loss) income before income taxes

(2,203

)

(0.1

57,067

3.9

Income tax (benefit) expense

(3,410

)

(0.2

11,062

0.7

Net income

1,207

0.1

46,005

3.2

Net income attributable to noncontrolling interests

24,685

1.6

19,683

1.4

Net (loss) income attributable to Ardent Health, Inc.

(23,478

)

(1.5

26,322

1.8

Net (loss) income per share:

Basic

(0.17

)

0.19

Diluted

(0.17

)

0.19

Weighted-average common shares outstanding:

Basic

141,226,862

137,107,595

Diluted

141,226,862

137,542,995

Ardent Health, Inc.

Condensed Consolidated Income Statements

(Unaudited; dollars in thousands, except per share amounts)

Nine Months Ended September 30,

2025

2024

Amount

Total revenue

4,719,260

100.0

4,359,783

100.0

Expenses:

Salaries and benefits

2,006,311

42.5

1,880,790

43.1

Professional fees

882,952

18.7

810,820

18.6

Supplies

805,375

17.1

769,034

17.6

Rents and leases

81,972

1.7

76,251

1.7

Rents and leases, related party

113,975

2.4

111,413

2.6

Other operating expenses

493,179

10.5

354,851

8.2

Interest expense

42,819

0.9

52,050

1.2

Depreciation and amortization

114,666

2.4

108,434

2.5

Loss on extinguishment and modification of debt

7,344

0.2

3,388

0.1

Other non-operating gains

(23,320

)

(0.5

(3,062

)

(0.1

Total operating expenses

4,525,273

95.9

4,163,969

95.5

Income before income taxes

193,987

4.1

195,814

4.5

Income tax expense

38,114

0.8

36,997

0.9

Net income

155,873

3.3

158,817

3.6

Net income attributable to noncontrolling interests

65,018

1.4

62,678

1.4

Net income attributable to Ardent Health, Inc.

90,855

1.9

96,139

2.2

Net income per share:

Basic

0.65

0.74

Diluted

0.64

0.74

Weighted-average common shares outstanding:

Basic

140,569,409

129,877,510

Diluted

141,242,065

130,022,643

Ardent Health, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited; in thousands)

Nine Months Ended

September 30,

2025

2024

Cash flows from operating activities:

Net income

155,873

158,817

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

114,666

108,434

Other non-operating losses

1,275

—

Loss on extinguishment and modification of debt

515

2,158

Amortization of deferred financing costs and debt discounts

3,568

4,235

Deferred income taxes

14,884

1,690

Equity-based compensation

30,183

8,873

(Income) loss from non-consolidated affiliates

(1,409

)

2,160

Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:

Accounts receivable

16,594

77,284

Inventories

(6,308

)

(2,545

)

Prepaid expenses and other current assets

(47,361

)

(21,189

)

Accounts payable and other accrued expenses and liabilities

(15,716

)

(132,031

)

Accrued salaries and benefits

(19,689

)

(12,429

)

Net cash provided by operating activities

247,075

195,457

Cash flows from investing activities:

Investment in acquisitions, net of cash acquired

—

(8,044

)

Purchases of property and equipment

(127,909

)

(106,234

)

Other

(92

)

(738

)

Net cash used in investing activities

(128,001

)

(115,016

)

Cash flows from financing activities:

Proceeds from insurance financing arrangements

15,607

10,797

Proceeds from long-term debt

—

3,600

Payments of principal on insurance financing arrangements

(10,751

)

(7,370

)

Payments of principal on long-term debt

(4,506

)

(106,335

)

Debt issuance costs

(2,573

)

(2,450

)

Payments of initial public offering costs

—

(8,636

)

Distributions to noncontrolling interests

(62,366

)

(53,138

)

Other

(1,829

)

—

Net cash (used in) provided by financing activities

(66,418

)

45,124

Net increase in cash and cash equivalents

52,656

125,565

Cash and cash equivalents at beginning of period

556,785

437,577

Cash and cash equivalents at end of period

609,441

563,142

Supplemental Cash Flow Information:

Non-cash purchases of property and equipment

13,509

5,546

Offering costs not yet paid

—

898

Ardent Health, Inc.

Condensed Consolidated Balance Sheets

(Unaudited; dollars in thousands, except per share amounts)

September 30,

2025 (1)

December 31,

2024 (1)

Assets

Current assets:

Cash and cash equivalents

609,441

556,785

Accounts receivable

729,414

743,031

Inventories

121,594

115,093

Prepaid expenses

130,882

113,749

Other current assets

366,129

304,093

Total current assets

1,957,460

1,832,751

Property and equipment, net

887,984

861,899

Operating lease right of use assets

292,206

248,040

Operating lease right of use assets, related party

919,124

929,106

Goodwill

877,509

852,084

Other intangible assets

90,090

76,930

Deferred income taxes

18,406

12,321

Other assets

111,594

142,969

Total assets

5,154,373

4,956,100

Liabilities and Equity

Current liabilities:

Current installments of long-term debt

19,342

9,234

Accounts payable

381,853

401,249

Accrued salaries and benefits

275,607

295,117

Other accrued expenses and liabilities

266,352

239,824

Total current liabilities

943,154

945,424

Long-term debt, less current installments

1,087,023

1,085,818

Long-term operating lease liability

260,748

221,443

Long-term operating lease liability, related party

908,482

919,313

Self-insured liabilities

260,621

227,048

Other long-term liabilities

62,498

34,697

Total liabilities

3,522,526

3,433,743

Redeemable noncontrolling interests

(1,489

)

1,158

Equity:

Preferred stock, par value $0.01 per share; 50,000,000 shares authorized; no shares issued and outstanding

—

Common stock, par value $0.01 per share; 750,000,000 shares authorized; 143,169,831 shares issued and outstanding as of September 30, 2025 and 142,747,818 shares issued and outstanding as of December 31, 2024

1,432

1,428

Additional paid-in capital

782,765

754,415

Accumulated other comprehensive (loss) income

(2,634

)

9,737

Retained earnings

456,651

365,796

Equity attributable to Ardent Health, Inc.

1,238,214

1,131,376

Noncontrolling interests

395,122

389,823

Total equity

1,633,336

1,521,199

Total liabilities and equity

5,154,373

4,956,100

(1)

As of September 30, 2025 and December 31, 2024, the unaudited condensed consolidated balance sheet included total liabilities of consolidated variable interest entities of $309.0 million and $306.4 million, respectively. Refer to Note 2 of the Company's unaudited condensed consolidated financial statements included in its Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2025 for further discussion.

Ardent Health, Inc.

Operating Statistics

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2025

% Change

2024

2025

% Change

2024

Total revenue (in thousands)

1,576,746

8.8

1,449,817

4,719,260

8.2

4,359,783

Hospitals operated (at period end) (1)

0.0

Licensed beds (at period end) (2)

4,281

(0.1

4,287

4,281

(0.1

4,287

Utilization of licensed beds (3)

6.5

8.7

Admissions (4)

41,862

5.8

39,568

124,786

6.7

116,995

Adjusted admissions (5)

89,328

2.9

86,833

261,031

2.4

254,909

Inpatient surgeries (6)

9,732

9.7

8,871

28,822

7.4

26,829

Outpatient surgeries (7)

22,813

(1.8

23,220

67,385

(2.6

69,201

Total surgeries

32,545

1.4

32,091

96,207

0.2

96,030

Emergency room visits (8)

161,198

(0.1

161,343

479,069

0.8

475,212

Patient days (9)

193,558

6.3

182,023

584,510

8.2

540,196

Total encounters (10)

1,577,281

6.4

1,482,655

4,519,815

5.0

4,304,097

Average length of stay (11)

4.62

0.4

4.60

4.68

1.3

4.62

Net patient service revenue per adjusted admission (12)

17,252

5.8

16,312

17,745

5.7

16,784

(1)

Hospitals operated (at period end). This metric represents the total number of hospitals operated by us at the end of the applicable period, irrespective of whether the hospital real estate is (i) owned by us, (ii) leased by us or (iii) held through a controlling interest in a JV. This metric includes the managed clinical operations of the hospital at UT Health North Campus in Tyler, Texas ("UT Health North Campus Tyler"), a hospital owned by The University of Texas Health Science Center at Tyler ("UTHSCT"), an affiliate of The University of Texas System. Since we only manage the clinical operations of UT Health North Campus Tyler, the financial results of such entity are not consolidated under Ardent Health, Inc.

On April 30, 2024, we closed UT Health East Texas Specialty Hospital, a long-term acute care hospital with 36 licensed patient beds (the “LTAC Hospital”) in Tyler, Texas. The LTAC Hospital's inventory and fixed assets were transferred or repurposed to be used by our other hospitals.

(2)

Licensed beds (at period end). This metric represents the total number of beds for which the appropriate state agency licenses a facility, regardless of whether the beds are actually available for patient use.

(3)

Utilization of licensed beds. This metric represents a measure of the actual utilization of our inpatient facilities, computed by (i) dividing patient days by the number of days in each period, and (ii) further dividing that number by average licensed beds, which is calculated by dividing total licensed beds (at period end) by the number of days in the period, multiplied by the number of days in the period the licensed beds were in existence.

(4)

Admissions. This metric represents the number of patients admitted for inpatient treatment during the applicable period.

(5)

Adjusted admissions. This metric is used by management as a general measure of combined inpatient and outpatient volume. Adjusted admissions provides management with a key performance indicator that considers both inpatient and outpatient volumes by applying an inpatient volume measure (admissions) to a ratio of gross inpatient and outpatient revenue to gross inpatient revenue. Gross inpatient and outpatient revenue reflect gross inpatient and outpatient charges prior to estimated contractual adjustments, uninsured discounts, implicit price concessions, and other discounts. The calculation of adjusted admissions is summarized as follows:

Adjusted Admissions

Admissions

(Gross Inpatient Revenue + Gross Outpatient Revenue)

Gross Inpatient Revenue

(6)

Inpatient surgeries. This metric represents the number of surgeries performed on patients who have been admitted to our hospitals. Pain management, c-sections, and certain diagnostic procedures are excluded from inpatient surgeries.

(7)

Outpatient surgeries. This metric represents the number of surgeries performed on patients who have not been admitted to our hospitals. Pain management, c-sections, and certain diagnostic procedures are excluded from outpatient surgeries.

(8)

Emergency room visits. This metric represents the total number of patients provided with emergency room treatment during the applicable period.

(9)

Patient days. This metric represents the total number of days of care provided to patients admitted to our hospitals during the applicable period.

(10)

Total encounters. This metric represents the total number of events where healthcare services are rendered resulting in a billable event during the applicable period. This includes both hospital and ambulatory patient interactions.

(11)

Average length of stay. This metric represents the average number of days admitted patients stay in our hospitals.

(12)

Net patient service revenue per adjusted admission. This metric represents net patient service revenue divided by adjusted admissions for the applicable period. Net patient service revenue reflects gross inpatient and outpatient charges less estimated contractual adjustments, uninsured discounts, implicit price concessions, and other discounts.

Ardent Health, Inc.

Supplemental Non-GAAP Disclosures

(Unaudited; in thousands)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Net income

1,207

46,005

155,873

158,817

Adjusted EBITDA Addbacks:

Income tax (benefit) expense

(3,410

)

11,062

38,114

36,997

Interest expense

13,914

14,629

42,819

52,050

Depreciation and amortization

39,156

36,771

114,666

108,434

Noncontrolling interest earnings

(24,685

)

(19,683

)

(65,018

)

(62,678

)

Loss on extinguishment and modification of debt

7,344

1,490

7,344

3,388

Other non-operating losses (gains) (1)

353

1,130

(208

)

Cybersecurity Incident recoveries, net (2)

(2,950

)

(4,976

)

(22,655

)

(4,976

)

Restructuring, exit and acquisition-related costs (3)

3,040

3,796

7,944

11,694

Change in accounting estimate (4)

43,298

—

43,298

—

New Mexico professional liability accrual (5)

54,468

—

54,468

—

Epic expenses (6)

1,620

485

2,904

1,500

Equity-based compensation

9,674

8,135

30,183

8,873

(Income) loss from disposed operations

(11

)

1,989

Adjusted EBITDA

143,018

97,764

411,092

315,880

Total revenue

1,576,746

1,449,817

4,719,260

4,359,783

Adjusted EBITDA margin

9.1

6.7

8.7

7.2

(1)

Other non-operating losses (gains)include losses and gains realized on certain non-recurring events or events that are non-operational in nature.

(2)

Cybersecurity Incident recoveries, net represent insurance recovery proceeds associated with the Cybersecurity Incident, net of incremental information technology and litigation costs.

(3)

Restructuring, exit and acquisition-related costs represent (i) enterprise restructuring costs, including severance costs related to work force reductions of $2.7 million and $3.2 million for the three months ended September 30, 2025 and 2024, respectively, and $6.0 million and $10.1 million for the nine months ended September 30, 2025 and 2024, respectively, (ii) penalties and costs incurred for terminating pre-existing contracts at acquired facilities of $0.2 million for the three months ended September 30, 2024, and $0.4 million and $0.6 million for the nine months ended September 30, 2025 and 2024, respectively, and (iii) third-party professional fees and expenses, salaries and benefits, and other internal expenses incurred in connection with potential and completed acquisitions of $0.3 million and $0.4 million for the three months ended September 30, 2025 and 2024, respectively, and $1.5 million and $1.0 million for the nine months ended September 30, 2025 and 2024, respectively.

(4)

Change in accounting estimate reflects the reduction in total revenue of $42.6 million and its $0.7 million impact on noncontrolling interest earnings as a result of a change in its accounting estimate of the collectability of accounts receivable as further described above.

(5)

During the three and nine months ended September 30, 2025, we recorded an increase in our professional liability reserves of $47.2 million. This adjustment included an increase of $54.5 million for adverse prior-period claim developments in New Mexico primarily attributable to recent claim settlements and ongoing litigation arising from the actions of a single provider who was employed between 2019 and 2022 and as further described above.

(6)

Epic expenses consist of various costs incurred in connection with the implementation of Epic, our health information technology system. These costs included (i) professional fees of $0.2 million and $0.5 million for the three months ended September 30, 2025 and 2024, respectively, and $1.5 million for each of the nine months ended September 30, 2025 and 2024, (ii) salaries and benefits of $1.3 million for each of the three and nine months ended September 30, 2025, and (iii) other expenses related to one-time training and onboarding support costs of $0.1 million for each of the three and nine months ended September 30, 2025. Epic expenses do not include ongoing operating costs of the Epic system.

Ardent Health, Inc.

Supplemental Non-GAAP Disclosures

(Unaudited; in thousands)

Three Months

Ended

September 30,

2025

Nine Months

Ended

September 30,

2025

Net income

1,207

155,873

Adjusted EBITDAR Addbacks:

Income tax expense

(3,410

)

38,114

Interest expense

13,914

42,819

Depreciation and amortization

39,156

114,666

Noncontrolling interest earnings

(24,685

)

(65,018

)

Loss on extinguishment and modification of debt

7,344

Other non-operating losses (1)

353

1,130

Cybersecurity Incident recoveries, net (2)

(2,950

)

(22,655

)

Restructuring, exit and acquisition-related costs (3)

3,040

7,944

Change in accounting estimate (4)

43,298

New Mexico professional liability accrual (5)

54,468

Epic expenses (6)

1,620

2,904

Equity-based compensation

9,674

30,183

(Income) loss from disposed operations

(11

)

Rent expense payable to REITs (7)

40,961

122,522

Adjusted EBITDAR

183,979

533,614

(1)

Other non-operating losses include losses realized on certain non-recurring events or events that are non-operational in nature.

(2)

Cybersecurity Incident recoveries, net represent insurance recovery proceeds associated with the Cybersecurity Incident, net of incremental information technology and litigation costs.

(3)

Restructuring, exit and acquisition-related costs represent (i) enterprise restructuring costs, including severance costs related to work force reductions of $2.7 million and $6.0 million for the three and nine months ended September 30, 2025, respectively, (ii) penalties and costs incurred for terminating pre-existing contracts at acquired facilities of $0.4 million for the nine months ended September 30, 2025, and (iii) third-party professional fees and expenses, salaries and benefits, and other internal expenses incurred in connection with potential and completed acquisitions of $0.3 million and $1.5 million for the three and nine months ended September 30, 2025, respectively..

(4)

(5)

(6)

Epic expenses consist of various costs incurred in connection with the implementation of Epic, our health information technology system. These costs included (i) professional fees of $0.2 million and $1.5 million for the three and nine months ended September 30, 2025, respectively, (ii) salaries and benefits of $1.3 million for each of the three and nine months ended September 30, 2025, and (iii) other expenses related to one-time training and onboarding support costs of $0.1 million for each of the three and nine months ended September 30, 2025. Epic expenses do not include ongoing operating costs of the Epic system.

(7)

Rent expense payable to REITs for the three and nine months ended September 30, 2025 consists of rent expense of $38.1 million and $114.0 million, respectively, related to the Ventas Master Lease and other lease agreements with Ventas for medical office buildings and rent expense of $2.9 million and $8.5 million, respectively, related to a lease arrangement with MPT for the lease of Hackensack Meridian Mountainside Medical Center.

Ardent Health, Inc.

Supplemental Non-GAAP Disclosures

(Unaudited; in millions)

Guidance for the Full Year Ending

December 31, 2025

Low

High

Net income

207

234

Adjusted EBITDA Addbacks:

Income tax expense

Interest expense

Depreciation and amortization

156

153

Noncontrolling interest earnings

(86

)

(88

)

Loss on extinguishment and modification of debt

Other non-operating gains

Cybersecurity Incident recoveries, net (1)

(23

)

(23

)

Restructuring, exit and acquisition-related costs

Change in accounting estimate (2)

New Mexico professional liability accrual (3)

Epic expenses

Enterprise system conversion costs

Equity-based compensation

Adjusted EBITDA

530

555

(1)

Cybersecurity Incident recoveries, net represent insurance recovery proceeds associated with the Cybersecurity Incident, net of incremental information technology and litigation costs.

(2)

(3)